Technology is fundamental to the retention of customers, for one simple reason. Technology facilitates and drives the development of services, expected by the tech savvy client. People are always looking for ways to make their payment processes faster, safer and more convenient. Fintech adoption has rapidly escalated amid the pandemic, which has meant that banking institutions have faced novel challenges such as the surge of customer data, ageing systems that cannot cope with the overload of data, and the sudden implementation of ad hoc solutions. One thing is for sure, technological advancements will support the growing (long-term) ambitions of financial institutions, making them better prepared for the shift in payment and banking behavior. Here’s how.
1. Performance upgrade with 5G
Financial institutions have focused more intently on increasing their functionality and services online to meet the demands of their customers. 5G technology will help fintech services retain existing customers by advancing AI and machine learning – powered more efficiently by the 5G network – to help provide better security and enhanced customer service tools. 5G will give faster speed and will enable banks to complete more difficult banking processes quicker. The shift in this technology will undoubtedly push banking institutions to make further reforms to ensure that they are ahead or in line with the competition.
2. Artificial Intelligence and machine learning
Machine learning technology enables historical data patterns to be identified, analyzed and predicted, for better customer-related decisions. Banking institutions can leverage predictive analytics to offer customers a more personalized customer experience and push new products that they think will be of interest to the individual. More connected devices provide clearer insights into customer behaviors, which will help banking institutions make better decisions regarding a customer’s needs, throughout their life cycle and in times of crisis.
3. Improved security systems
Better technology will help improve security systems against fraudulent activity. Technology will make it easier to identify malicious transactions which will protect merchants and banking institutions. A safer platform also inspires confidence and trust in existing customers and helps generate more business. Keeping customer information safe is vital in the development of fintech platforms. 3DS2 – the cutting-edge of authentication – enables customers to provide biometric data in real-time and creates a safe system that connects merchants, card networks, and financial institutions to authenticate transactions. This form of security will undoubtedly evolve to provide greater protection to cardholders against cybercrime in the future.